Fed, central banks cut rates to aid world economy
In a rare coordinated move, the Federal Reserve and other major central banks from around the world slashed interest rates Wednesday to prevent a mushrooming financial crisis from becoming a global economic meltdown.
The decision sent Wall Street on a roller coaster ride.
In a rare coordinated move, the Federal Reserve and other major central banks from around the world slashed interest rates Wednesday to prevent a mushrooming financial crisis from becoming a global economic meltdown.
The decision sent Wall Street on a roller coaster ride. The major indexes moved in and out of positive territory, with the Dow Jones industrials at times falling more than 200 points or rising more than 100.
Overseas markets tumbled on worries the move would not immediately help ease the pain from the financial crisis.
The Fed reduced its key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent.
The central banks of China, Canada, Sweden and Switzerland also cut rates. The Bank of Japan said it strongly supported the actions.
Brief by The Associated Press
